Channel conflict: Target warns Hollywood on DVDs

Target sent a letter to large film producers last month stating that it wants "a level playing field" when it comes to movie pricing, according to the report. The Minneapolis-based discount retailer said it might reduce DVD shelf space and marketing efforts if online services get better deals.

Wal-Mart and Target (who between them account for more than half the DVDs sold in the US) are apparently upset about a deal between Apple and Disney (the Steve Jobs connection) giving iTunes the right to sell Disney films for $12.99.